Bank of Baroda-supported IndiaFirst Life Insurance gets Sebi nod to launch IPO

Capital market regulator SEBI on Tuesday approved Bank of Baroda-promoted IndiaFirst Life Insurance Company's (IndiaFirst Life) request to launch an Initial Public Offering (IPO). 

The IPO includes a fresh issue of up to Rs 500 crore along with an offer for sale (OFS) of up to 14,12,99,422 equity shares by the existing shareholders and the promoters of the company.

As per information available, Bank of Baroda will sell 8,90,15,734 equity shares, while Union Bank of India will sell 1,30,56,415 equity shares in the OFS.

Alongside it, Carmel Point Investments India would offload 3,92,27,273 equity shares during the primary stake sale.

Bank of Baroda, India's third-largest public sector lender, has a 65 per cent stake in the company.

Warburg Pincus affiliate Carmel Point Investments India and Union Bank of India hold 26 per cent and 9 per cent stakes in the company, respectively.

The firm may consider a private placement on a preferential basis or a rights issue aggregating up to Rs 100 crore.

If this placement comes into existance, the fresh issue size will be reduced.

The net proceeds from the fresh issuance worth Rs 500 crore will be used towards augmentation of its capital base to support solvency levels.

The company, which filed preliminary IPO papers with the Securities and Exchange Board of India (SEBI) in October, obtained its observation letter on March 15, an update with the regulatory board showed on Tuesday.

If a company obtains an observation letter from SEBI, it means it can go ahed with the IPO launch.

IndiaFirst Life is supported by an extensive bancassurance network provided by Bank of Baroda, and Union Bank, two of India's largest public sector banks.

ICICI Securities, Ambit, BNP Paribas, BOB Capital Markets, HSBC Securities and Capital Markets (India), Jefferies India and JM Financial are the book-running lead managers to the issue.

The equity shares will be listed on the BSE and the NSE.

(with inputs from PTI)